Penguin International

[CityFarmer]

Just based on the current amount of inventories and accounts payables, there is good reason to believe FY2015 will see around 4 cents of earnings. Even at 25 cents, a PE of 6, is way undemanding. Then of course, to the purists, there is no discount to NAV at current prices, but the NAV should catch up within a year.

What is to say then, that the O&G will not see a sudden upturn, just like the sudden downturn? When the Penguin starts to sprint then in terms of EPS due to an O&G upturn, with any upwards revision to the PE that investors are willing to accord to it, the Penguin may become uncatchable at current prices.

Looking at the inventory numbers and the amount spent on inventory in the 4Q tells me they have a large order to fulfil in the next 6 months. This is good considering oil price has been sliding and yet they still receive orders. That tells their customers are not affected by the sliding oil price.

A bit too early to tell as oil slide only started late nov period, the financials reflect the period oil was still high, these could be the residual orders likely from before o&g companies started cutting expenditures.

Could face cancallation and drought of orders next quarter. Management already hinted

Lack of order book transparency will only leave investors speculating.
-- via Xperia Z1 with tapatalk

Kindly, go and check your chart. Oil start it descend in June 2014., and not late Nov.

http://www.investing.com/commodities/crude-oil

BlueKelah is right, oil price only started to fall rapidly near end of 2014.

Yes. The real test has just begun. The company is ready for the test, and will survive with little dent for FY2015, IMO.

(vested, and might be wrong)